What changed in this filing

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Item 2. Management’s Discussion and Analysis

2023-11-08 compared with 2023-08-09 · 172 added, 179 removed, 395 unchanged (47% of the section changed)

7 unchanged sentences

We are primarily a gold and silver producer with operating assets located in the United States and Mexico and an exploration project in Canada.

Second Quarter Highlights

For the quarter, Coeur reported revenue of $177.2 million and cash provided by operating activities of $39.4 million.

Third Quarter Highlights

For the quarter, Coeur reported revenue of $194.6 million and cash used in operating activities of $2.4 million.

We reported GAAP net loss of $21.1 million, or $0.06 per diluted share.

On a non-GAAP adjusted basis 1 , the Company reported EBITDA of $30.6 million and net loss of $18.6 million or $0.05 per diluted share.

For the six months ended June 30, 2023, Coeur reported revenue of $364.5 million and cash provided by operating activities of $4.4 million.

For the nine months ended September 30, 2023, Coeur reported revenue of $559.1 million and cash provided by operating activities of $2.0 million.

We reported GAAP net loss of $78.1 million, or $0.24 per diluted share.

On a non-GAAP adjusted basis 1 , the Company reported EBITDA of $78.0 million and net loss of $71.8 million or $0.22 per diluted share.

• Rochester expansion approximately 97% complete as of July 31 – Solution is now circulating through the completed Stage VI leach pad and Merrill-Crowe process plant, with initial ounces expected to be recovered next month.

Construction completion of the new three-stage crushing circuit is anticipated this quarter.

Ramp-up of the expanded operation is set to occur over the remainder of 2023 and into early 2024, leading to expected significant production growth and materially lower costs.

The estimated ultimate cost to complete the expansion is expected to be approximately 6 - 9%, or $40 - $60 million, higher than the prior high-end of guidance.

The Company has incurred approximately $660 million of total project costs through the end of July.

• Second quarter operating strength at Rochester and Wharf offset lower production at Kensington – Gold and silver production for the quarter totaled 68,406 ounces and 2.4 million ounces, respectively.

Stronger production at Rochester and Wharf offset a weaker quarter at Kensington due to excessive water flows and paste backfill issues, which delayed the timing of production from certain stopes

• Full-year silver production guidance maintained;

gold production guidance revised to reflect lower outlook at Kensington – 2023 silver production is expected to be 10 - 12 million ounces.

2023 gold production expected to be 304,000 - 352,500 ounces, approximately 5% lower than prior full-year gold production guidance, after taking Kensington’s lower than anticipated second quarter production into account

• Balance sheet flexibility maintained to support remaining capital investments – Coeur ended the quarter with total liquidity of approximately $346 million including $57 million of cash, $280 million of available capacity under its $390 million revolving credit facility (“RCF”), and $9 million of marketable securities

• State of South Dakota approves Boston Expansion at Wharf - Coeur has received a state mine permit from the South Dakota Board of Minerals and Environment allowing for a fifty-acre expansion of mining operations at Wharf, which is expected to add significant certainty to Wharf’s current eight-year mine life

• Increased revenue and adjusted EBITDA driven by stronger gold production and lower costs – Revenue increased 10% and adjusted EBITDA increased 38% quarter-over-quarter, due to a 15% quarter-over-quarter increase in gold production and a 13% quarter-over-quarter decline in adjusted costs applicable to sales per gold ounce

• Rochester expansion project now complete – First production from the new leach pad and process plant was achieved in mid-September.

The legacy crushing circuit is now being decommissioned in preparation of mining expected to begin in that location in 2024

• Material step-up in Rochester production now occurring – During the month of October, Rochester recovered 537,000 ounces of silver and 8,050 ounces of gold, which is more than double the year-to-date monthly average silver production and more than triple the year-to-date monthly average gold production

• Gold production and cost guidance updated;

silver guidance remains unchanged – A stronger anticipated fourth quarter at Wharf is expected to offset adjusted gold production guidance at Kensington.

The low end of total 2024 production guidance remains unchanged and the overall range has narrowed to 304,000 - 342,500 ounces.

Additionally, Kensington cost guidance has been revised to reflect the impact of revised production expectations.

Silver full-year production guidance of 10 - 12 million ounces remains unchanged

• Balance sheet and hedging initiatives supporting remaining capital requirements – With elevated capital investment levels related to the recently completed Rochester expansion expected through year-end, Coeur ended the quarter with total liquidity of approximately $280 million.

Realized and unrealized gains from the Company’s 2023 gold and silver hedges total nearly $20 million at quarter-end, providing meaningful downside protection through this period of capital intensity

Selected Financial and Operating Results

Three Months Ended Six Months Ended

In thousands June 30, 2023 March 31, 2023 June 30, 2023 June 30, 2022

Financial Results (In thousands):

Three Months Ended Nine Months Ended

September 30, 2023 June 30, 2023 September 30, 2023 September 30, 2022

Financial Results:

(in thousands, except per share amounts)

Gold sales $ 139,503 $ 121,355 $ 387,959 $ 415,257

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Consolidated Financial Results

Three Months Ended June 30, 2023 compared to Three Months Ended March 31, 2023

Three Months Ended September 30, 2023 compared to Three Months Ended June 30, 2023

We sold 78,015 gold ounces and 2.2 million silver ounces, compared to 67,090 gold ounces and 2.3 million silver ounces.

Revenue decreased by $10.1 million, or 5%, as a result of a 5% and 10% decrease in gold and silver ounces sold, respectively, partially offset by a 1% and 3% increase in average realized gold and silver prices, respectively.

The decrease in gold ounces sold was primarily due to lower mill throughput at Palmarejo, timing of recoveries and placement of ore tons on the new Stage VI leach pad at Rochester, and lower grades at Kensington, partially offset by timing of recoveries at Wharf.

The decrease in silver ounces sold was primarily due to lower mill throughput at Palmarejo and timing of recoveries and placement of ore tons on the new Stage VI leach pad at Rochester.

Gold and silver represented 68% and 32% of second quarter 2023 sales revenue, respectively, compared to 68% and 32% of first quarter 2023 sales revenue, respectively.

Revenue increased by $17.3 million, or 10%, as a result of a 16% increase gold ounces sold and a 4% increase in average realized silver prices, partially offset by a 5% decrease in silver ounces sold and a 1% decrease in average realized gold prices.

The increase in gold ounces sold was primarily due to higher mill throughput at Palmarejo and Kensington, higher grades at Kensington, partially offset by the timing of production from Rochester’s new leach pad related to startup of the new process plant and timing of recoveries at Wharf.

The decrease in silver ounces sold was primarily due to lower silver grades at Palmarejo and the timing of production on the new leach pad related to startup of the new process plant.

Gold and silver represented 72% and 28% of third quarter 2023 sales revenue, respectively, compared to 68% and 32% of second quarter 2023 sales revenue, respectively.

The following table summarizes consolidated metal sales:

Three Months Ended Increase (Decrease) Percentage Change

In thousands June 30, 2023 March 31, 2023

In thousands September 30, 2023 June 30, 2023

Gold sales $ 139,503 $ 121,355 $ 18,148 15 %

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Costs Applicable to Sales

Costs applicable to sales decreased $13.4 million, or 9%, primarily due to lower gold and silver ounces sold and a decreased lower of cost or net realizable value (“LCM”) adjustments at Rochester.

Costs applicable to sales increased $8.3 million, or 6%, primarily due to higher gold ounces sold and a higher net realizable value (“LCM”) adjustments at Rochester.

For a complete discussion of costs applicable to sales, see Results of Operations below.

Amortization decreased $3.1 million, or 14% primarily due to lower gold and silver ounces sold.

Amortization increased $3.3 million, or 17% primarily due to an increase in gold ounces sold and the commencement of production of the new leach pad in mid-September 2023 at Rochester.

General and administrative expenses decreased $0.3 million, or 3%, primarily due to lower employee incentive related costs.

Exploration expense decreased $1.7 million, or 37% driven by increased Canadian mining exploration tax credits associated with expenditures at the Silvertip exploration project.

Exploration expense increased $9.5 million, or 326%, driven by accelerated drilling activity at Palmarejo, Kensington and Silvertip.

Pre-development, reclamation, and other expenses decreased $1.4 million, or 14%, stemming from lower ongoing carrying costs at Silvertip.

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Three Months Ended Increase (Decrease) Percentage Change

In thousands June 30, 2023 March 31, 2023

In thousands September 30, 2023 June 30, 2023

COVID-19 $ 14 $ 21 $ (7) (33) %

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Other Income and Expenses

During the third quarter of 2023, the Company incurred a $0.8 million gain in connection with the exchange of $19.3 million in aggregate principal amount plus accrued interest of 2029 Senior Notes for 7.6 million shares of common stock.

During the second quarter of 2023, the Company incurred a $3.0 million gain in connection with the exchange of $48.5 million in aggregate principal amount plus accrued interest of 2029 Senior Notes for 13.9 million shares of common stock.

Fair value adjustments, net, decreased to a loss of $3.9 million compared to a gain of $10.6 million as a result of a decrease in value of the Company’s equity investments.

Fair value adjustments, net, decreased to a loss of $2.0 million compared to $3.9 million as a result of an increase in value of the Company’s equity investments.

For additional details on the Company’s equity investments see Note 6 -- Investments.

Interest expense (net of capitalized interest of $3.2 million) decreased to $6.9 million from $7.4 million due to lower interest payable following the extinguishment of $48.5 million in 2029 Senior Notes, and higher capitalized interest, partially offset by higher interest paid under the RCF due to increasing interest rates.

Other, net decreased to a loss of $9.9 million compared to $1.0 million as a result of the $12.3 million loss recognized from the sale of the deferred cash consideration, two royalties and contingent consideration received in connection with the sale of the La Preciosa Deferred Consideration.

Interest expense (net of capitalized interest of $4.1 million) increased to $7.4 million from $6.9 million due to higher interest paid under the RCF as a result of increasing interest rates, partially offset by higher capitalized interest, and lower interest payable following the extinguishment of $67.8 million in 2029 Senior Notes.

Other, net decreased to a gain of $0.5 million compared to a loss of $9.9 million as a result of the $12.3 million loss recognized from the sale of La Preciosa Deferred Consideration in the second quarter of 2023.

Income and Mining Taxes

Income and mining tax expense of approximately $9.9 million resulted in an effective tax rate of (43.8)% for the three months ended June 30, 2023.

This compares to income tax expense of $10.7 million for an effective tax rate of (77.2)% for the three months ended March 31, 2023.

Income and mining tax expense of approximately $6.1 million resulted in an effective tax rate of (40.6)% for the three months ended September 30, 2023.

This compares to income tax expense of $9.9 million for an effective tax rate of (43.8)% for the three months ended June 30, 2023.

The comparability of the Company’s income and mining tax (expense) benefit and effective tax rate for the reported periods was impacted by multiple factors, primarily:

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(iii) mining taxes;

(iv) the sale of non-core assets;

(v) foreign exchange rate;

(iv) foreign exchange rate;

(v) the sale of non-core assets;

(vi) percentage depletion;

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The following table summarizes the components of the Company’s income (loss) before tax and income and mining tax (expense) benefit:

Three Months Ended June 30, Three Months Ended March 31,

Three Months Ended September 30, Three Months Ended June 30,

In thousands Income (loss) before tax Tax (expense) benefit Income (loss) before tax Tax (expense) benefit

10 unchanged sentences

Net loss was $21.1 million, or $0.06 per diluted share, compared to $32.4 million, or $0.10 per diluted share.

The increase in net loss was driven by a 5% and 10% decrease in gold and silver ounces sold, respectively, unfavorable changes in the fair value of the Company’s equity investments, and a $12.3 million loss on the sale of the La Preciosa Deferred Consideration.

This was partially offset by a $3.0 million gain from extinguishment of $48.5 million in aggregate principal of 2029 Senior Notes, a 1% and 3% increase in average realized gold and silver prices, and lower exploration costs.

The decrease in net loss was driven by a 16% increase gold ounces sold, a 4% increase in average realized silver prices, favorable changes in the fair value of the Company’s equity investments, and a $12.3 million loss on the sale of the La Preciosa Deferred Consideration recognized in the second quarter of 2023.

This was partially offset by a 5% decrease in silver ounces sold, a 1% decrease in average realized gold prices, a higher LCM adjustment at Rochester, and higher exploration costs.

Adjusted net loss was $18.6 million, or $0.05 per diluted share, compared to $20.2 million, or $0.06 per diluted share (see “Non-GAAP Financial Performance Measures”).

Six Months Ended June 30, 2023 compared to Six Months Ended June 30, 2022

Nine Months Ended September 30, 2023 compared to Nine Months Ended September 30, 2022

We sold 215,971 gold ounces and 7.1 million silver ounces, compared to 241,779 gold ounces and 7.3 million silver ounces.

Revenue decreased by $16.4 million, or 3%, as a result of a 11% and 2% decrease in gold and silver ounces sold, respectively, partially offset by a 5% and 9% increase in average realized gold and silver prices, respectively.

The decrease in gold ounces sold was primarily due to lower mill throughput and grades at Palmarejo and lower mill throughput and recoveries at Kensington, partially offset by timing of recoveries at Rochester and Wharf, and higher grades at Wharf.

The decrease in gold ounces sold was primarily due to lower mill throughput at Palmarejo and Kensington, lower grades and recoveries at Kensington, and the timing of production from Rochester’s new leach pad related to startup of the new process plant, partially offset by higher grades at Wharf.

The decrease in silver ounces sold was primarily due to lower mill throughput at Palmarejo, partially offset by the timing of recoveries and higher grades at Rochester.

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The following table summarizes consolidated metal sales:

Six Months Ended Increase (Decrease) Percentage Change

In thousands June 30, 2023 June 30, 2022

Nine Months Ended Increase (Decrease) Percentage Change

In thousands September 30, 2023 September 30, 2022

Gold sales $ 387,959 $ 415,257 $ (27,298) (7) %

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Costs Applicable to Sales

Costs applicable to sales increased $8.7 million, or 3%, primarily due to higher operating costs partially impacted by continued inflationary pressures relating to diesel and consumable costs.

Costs applicable to sales decreased $6.5 million, or 1%, primarily due to lower gold and silver ounces sold and lower LCM adjustments at Rochester.

For a complete discussion of costs applicable to sales, see Results of Operations below.

Amortization decreased $12.1 million primarily due to lower gold ounces sold and longer assumed mine lives at Palmarejo, Rochester, Kensington and Wharf driven by prior year’s successful investments in exploration.

General and administrative expenses increased $2.3 million, or 12%, primarily due to higher employee incentive related costs.

Exploration expense decreased $3.1 million, or 29%, driven by increased Canadian mining exploration tax credits associated with expenditures at the Silvertip exploration project.

Pre-development, reclamation, and other expenses increased $0.3 million, or 2%, stemming from higher asset retirement accretion, partially offset by lower costs incurred in connection with the Company’s COVID-19 health and safety protocols.

Amortization decreased $18.4 million primarily due to lower gold and silver ounces sold and longer assumed mine lives at Palmarejo, Rochester, Kensington and Wharf driven by prior year’s successful investments in exploration.

General and administrative expenses increased $2.1 million, or 7%, primarily due to higher employee incentive related costs and corporate administrative costs.

Exploration expense increased $0.9 million, or 5%, driven by accelerated drilling activity at Palmarejo, Kensington and Silvertip, partially offset by the Canadian mining exploration tax credits associated with expenditures at the Silvertip exploration project recognized in the second quarter of 2023.

Pre-development, reclamation, and other expenses decreased $0.2 million, or 1%, stemming from lower ongoing carrying costs at Silvertip and lower costs incurred in connection with the Company’s COVID-19 health and safety protocols, partially offset by higher asset retirement accretion.

The following table summarizes pre-development, reclamation, and other expenses:

Six Months Ended June 30, Increase (Decrease) Percentage Change

Nine Months Ended September 30, Increase (Decrease) Percentage Change

In thousands 2023 2022

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Other Income and Expenses

Fair value adjustments, net, increased to a gain of $6.6 million compared to a $52.2 million loss as a result of an increase in value of the Company’s equity investments.

During the first nine months of 2023, the Company incurred a $3.7 million gain in connection with the exchange of $67.8 million in aggregate principal amount plus accrued interest of 2029 Senior Notes for 21.6 million shares of common stock.

Fair value adjustments, net, increased to a gain of $4.6 million compared to a loss $65.3 million loss as a result of an increase in value of the Company’s equity investments.

For additional details on the Company’s equity investments see Note 6 -- Investments.

Interest expense (net of capitalized interest of $5.3 million) increased to $14.3 million from $9.7 million due to higher interest paid under the RCF attributable to higher average debt levels and interest rates, and lower capitalized interest.

Interest expense (net of capitalized interest of $9.4 million) increased to $21.7 million from $15.7 million due to higher interest paid under the RCF attributable to higher average debt levels and interest rates, partially offset by lower interest payable following the extinguishment of $67.8 million in 2029 Senior Notes.

Other, net decreased to a loss of $10.4 million compared to a gain of $2.2 million, as a result of the $12.3 million loss recognized from the sale of the La Preciosa Deferred Consideration.

Income and Mining Taxes

During the first half of 2023, income and mining tax expense of approximately $20.6 million resulted in an effective tax rate of (56.5)% for 2023.

During the nine months of 2023, income and mining tax expense of approximately $26.7 million resulted in an effective tax rate of (51.9)% for 2023.

This compares to income tax expense of $15.1 million for an effective tax rate of (13.4)% for 2022.

The comparability of the Company’s income and mining tax (expense) benefit and effective tax rate for the reported periods was impacted by multiple factors, primarily:

(i) the sale of non-core assets;

(ii) variations in our income before income taxes;

(iii) geographic distribution of that income;

(i) variations in our income before income taxes;

(ii) geographic distribution of that income;

(iii) the sale of non-core assets;

(iv) mining taxes;

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The following table summarizes the components of the Company’s income (loss) before tax and income and mining tax (expense) benefit:

Six Months Ended June 30,

Nine Months Ended September 30,

In thousands Income (loss) before tax Tax (expense) benefit Income (loss) before tax Tax (expense) benefit

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Net loss was $78.1 million, or $0.24 per diluted share, compared to $127.2 million, or $0.47 per diluted share.

The decrease in net loss was driven by favorable changes in the fair value of the Company’s equity investments, a 4% and 1% increase in average realized gold and silver prices, respectively, decreased LCM adjustments at Rochester and lower exploration costs.

The decrease in net loss was driven by a 5% and 9% increase in average realized gold and silver prices, respectively, decreased LCM adjustments at Rochester, favorable changes in the fair value of the Company’s equity investments, and a $3.7 million gain in connection with the exchange of 2029 Senior Notes.

This was partially offset by a 11% and 2% decrease in gold and silver ounces sold, respectively, higher losses on the sale of assets, interest expense and income and mining taxes.

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2023 Guidance

Coeur reiterated its 2023 production and cost guidance other than (i) updating production and costs at Kensington and (ii) modifying capital expenditures to reflect the updated estimate to complete the Rochester expansion.

The Company has made the following changes to its 2023 gold production and cost guidance:

(i) the low end of Wharf’s gold production guidance has been revised upward;

and (ii) Kensington’s 2023 gold production and cost guidance have been refined to reflect the cumulative impact of paste backfill challenges at Kensington earlier in the year.

2023 Production Guidance

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2023 Capital, Exploration and G&A Guidance

Previous Updated

Capital Expenditures, Sustaining $148 - $168

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The Company’s previous guidance figures assume estimated prices of $1,800/oz gold and $23.00/oz silver as well as CAD of 1.25 and MXN of 20.00.

Guidance figures exclude the impact of any metal sales or foreign exchange hedges.

The Company’s updated guidance figures assume estimated prices of $1,900/oz gold and $23.00/oz silver as well as CAD of 1.25 and MXN of 20.00.

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Results of Operations

Three Months Ended Six Months Ended

June 30, 2023 March 31, 2023 June 30, 2023 June 30, 2022

Three Months Ended Nine Months Ended

September 30, 2023 June 30, 2023 September 30, 2023 September 30, 2022

Tons milled 501,722 472,622 1,507,950 1,643,561

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(1) See Non-GAAP Financial Performance Measures.

Three Months Ended June 30, 2023 compared to Three Months Ended March 31, 2023

Gold and silver production decreased 8% as a result of 11% lower mill throughput, partially offset by 8% and 2% higher gold and silver grades, respectively.

Three Months Ended September 30, 2023 compared to Three Months Ended June 30, 2023

Gold and silver production increased 16% and decreased 1%, respectively, as a result of 6% increase mill throughput, higher gold and silver recoveries, and 2% and 10% lower gold and silver grades, respectively.

Metal sales were $77.3 million, or 40% of Coeur’s metal sales, compared with $72.7 million, or 41% of Coeur’s metal sales.

Revenue decreased by $9.6 million or 12%, of which $11.6 million was due to a lower volume of gold and silver production, partially offset by an increase of $2.0 million due to higher average realized gold and silver prices.

Costs applicable to sales per gold and silver ounce increased 11% and 9%, respectively, due to higher consumable costs and higher employee-related costs.

Amortization decreased to $8.0 million due to lower sales.

Capital expenditures increased to $11.9 million from $10.2 million due to higher expenditures related to the open pit backfill project and underground development.

Six Months Ended June 30, 2023 compared to Six Months Ended June 30, 2022

Gold and silver production decreased 14% and 7%, respectively as a result of 9% lower mill throughput, 2% lower gold grades, and lower recoveries, partially offset by 4% higher silver grades.

Revenue increased by $4.6 million or 6%, of which $5.0 million was due to a higher gold production, partially offset by a decrease of $0.4 million due to lower gold prices.

Costs applicable to sales per gold ounce decreased 10% and per silver ounce increased 3%, due to the mix of gold and silver sales and a strengthening Mexican Peso.

Amortization of $9.0 million was in-line with prior quarter.

Capital expenditures decreased to $10.8 million from $11.9 million due to lower expenditures related to the open pit backfill project and underground development.

Nine Months Ended September 30, 2023 compared to Nine Months Ended September 30, 2022

Gold and silver production decreased 7% and 5%, respectively as a result of 8% lower mill throughput, partially offset by 2% and 4% higher gold and silver grades, respectively.

Metal sales were $232.3 million, or 42% of Coeur’s metal sales, compared with $233.9 million, or 41% of Coeur’s metal sales.

Revenue decreased by $1.6 million or 1%, of which $19.5 million was due to a lower volume of gold and silver production, partially offset by an increase of $17.9 million due to higher average realized gold and silver prices.

Costs applicable to sales per gold and silver ounce increased 22% and 15%, respectively, due to the mix of gold and silver sales, lower production, higher employee-related and consumable costs primarily due to inflationary pressures.

Amortization decreased to $16.7 million due to lower sales and longer assumed mine life.

Costs applicable to sales per gold and silver ounce increased 13% and 18%, respectively, due to the mix of gold and silver sales, lower production, higher employee-related and consumable costs primarily due to continued inflationary pressures and a strengthening Mexican Peso.

Amortization decreased to $25.8 million due to a decrease in gold and silver ounces sold and longer assumed mine life.

Capital expenditures decreased to $32.8 million from $34.5 million due to lower infill drilling activities.

Three Months Ended Six Months Ended

June 30, 2023 March 31, 2023 June 30, 2023 June 30, 2022

Three Months Ended Nine Months Ended

September 30, 2023 June 30, 2023 September 30, 2023 September 30, 2022

Tons placed (1)

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$ 31.74 $ 21.39 $ 27.38 $ 30.04

(1) During the three months ended June 30, 2023, 258,736 and 2,432,104 tons were placed on Stage IV and Stage VI leach pads, respectively.

During the three months ended March 31, 2023, 1,405,499 and 1,051,087 tons were placed on Stage IV and Stage VI leach pads, respectively.

During the six months ended June 30, 2023, 1,664,235 and 3,483,192 tons were placed on Stage IV and Stage VI leach pads, respectively.

During the six months ended June 30, 2022, 8,338,045 and 276,287 tons were placed on Stage IV and Stage VI leach pads, respectively.

(1) During the three months ended September 30, 2023, 743,551 and 2,743,622 tons were placed on legacy and new leach pads, respectively.

During the nine months ended September 30, 2023, 2,407,785 and 6,226,814 tons were placed on legacy and new leach pads, respectively.

During the nine months ended September 30, 2022, 11,889,398 and 276,287 tons were placed on legacy and new leach pads, respectively.

(2) See Non-GAAP Financial Performance Measures.

Three Months Ended June 30, 2023 compared to Three Months Ended March 31, 2023

Gold and silver production decreased 23% and 10%, respectively, as a result of the timing of recoveries primarily due to Rochester preparing to transition from the legacy Stage IV leach pad to the new Stage VI leach pad associated with the Rochester expansion.

Approximately 90% of the tons placed in the second quarter of 2023 were placed onto the new Stage VI leach pad, which is expected to begin production in the third quarter of 2023.

Three Months Ended September 30, 2023 compared to Three Months Ended June 30, 2023

Gold and silver production decreased 29% and 11%, respectively, as a result of the timing of recoveries primarily due to Rochester preparing to transition from the legacy leach pad to the new leach pad associated with the Rochester expansion.

Approximately 80% of the tons placed in the third quarter of 2023 were placed onto the new leach pad, which commenced production in mid-September 2023.

Metal sales were $23.6 million, or 12% of Coeur’s metal sales, compared with $29.1 million, or 16% of Coeur’s metal sales.

Revenue decreased by $4.8 million, or 14%, of which $5.4 million was due to a lower volume of gold and silver production, partially offset by an increase of $0.6 million due to higher average realized gold and silver prices.

Costs applicable to sales per gold and silver ounce decreased 28% due to a lower LCM adjustment of $1.6 million compared to $13.1 million in the prior period and lower cyanide and outside service costs.

Amortization decreased to $3.6 million due to lower gold and silver ounces sold.

Revenue decreased by $5.5 million, or 19%, of which $6.2 million was due to a lower volume of gold and silver production, partially offset by an increase of $0.7 million due to higher average realized gold prices.

Costs applicable to sales per gold and silver ounce increased 48% due to a higher LCM adjustment of $7.7 million compared to $1.6 million in the prior period.

Amortization increased to $4.2 million due to commencement of production of the new leach pad in mid-September 2023.

Capital expenditures increased to $84.4 million from $61.5 million due to timing of payments related to the Rochester expansion project.

Six Months Ended June 30, 2023 compared to Six Months Ended June 30, 2022

Gold and silver production increased 1% and 7%, respectively, primarily due to the timing of recoveries.

Nine Months Ended September 30, 2023 compared to Nine Months Ended September 30, 2022

Gold and silver production decreased 18% and 2%, respectively, primarily due to the timing of recoveries.

Metal sales were $86.6 million, or 15% of Coeur’s metal sales, compared with $87.0 million, or 15% of Coeur’s metal sales.

Revenue increased by $6.1 million, or 11%, of which $5.0 million was due to a higher volume of gold and silver production, and $1.1 million due to higher average realized gold and silver prices.

Costs applicable to sales per gold and silver ounce decreased 7% and 11%, respectively, due to the mix of gold and silver sales, lower LCM adjustments of $14.7 million compared to $16.8 million in the prior period, and lower diesel costs, partially offset by higher employee-related, and maintenance costs.

Revenue decreased by $0.4 million, or 0%, of which $6.3 million was due to a lower volume of silver production, partially offset by an increase of $5.9 million due to higher average realized gold and silver prices.

Costs applicable to sales per gold and silver ounce decreased 15% and 9%, respectively, due to the mix of gold and silver sales, lower LCM adjustments of $22.4 million compared to $38.0 million in the prior period, lower diesel costs, partially offset by higher employee-related, and maintenance costs.

Amortization decreased to $13.0 million due to longer assumed mine life.

Capital expenditures increased to $197.8 million from $154.0 million due to timing of payments related to the Rochester expansion project.

At the end of July, the project was approximately 97% complete and the Company had incurred $660 million of the total project costs.

Coeur expects to achieve mechanical completion of the crusher corridor in the third quarter, with ramp-up anticipated throughout the second half of 2023 and into early 2024.

The Company also updated its estimate for the expected ultimate cost to complete the expansion, which reflects additional contractor hours required to offset the loss of approximately thirty days due to extreme weather and lower than planned productivity rates driven by a lack of qualified skilled labor.

Together with ongoing inflationary impacts and required construction re-work to address issues from previously completed engineering designs, the Company expects the total cost for the project to be approximately 6 - 9%, or $40 - $60 million above the high end of Coeur’s previous guidance range of $650 - $670 million.

Three Months Ended Six Months Ended

June 30, 2023 March 31, 2023 June 30, 2023 June 30, 2022

Construction of the new three-stage crushing circuit is now complete and first production from the new leach pad and process plant began in mid-September.

Commissioning of the process plant is complete and commissioning of the new crusher corridor is underway, with ramp-up expected throughout the remainder of 2023 and into the first half of 2024.

Once operating at full capacity, throughput levels are expected to average 32 million tons per year, which is approximately 2.5 times higher than historical levels, making Rochester one of the largest open pit heap leach operations in the world.

The total estimated capital for the project remains at $710 - $730 million.

Three Months Ended Nine Months Ended

September 30, 2023 June 30, 2023 September 30, 2023 September 30, 2022

Tons milled 167,950 152,907 474,194 516,936

6 unchanged sentences

(1) See Non-GAAP Financial Performance Measures.

Three Months Ended June 30, 2023 compared to Three Months Ended March 31, 2023

Gold production decreased 35% as a result of 40% lower grades due to challenges with mine sequencing and stope extraction driven by significant water inflows from spring runoff and paste backfill issues.

Three Months Ended September 30, 2023 compared to Three Months Ended June 30, 2023

Gold production increased 87% as a result of 78% higher grades and 10% higher milled throughput.

Metal sales were $46.5 million, or 24% of Coeur’s metal sales, compared to $24.6 million, or 14% of Coeur’s metal sales.

Revenue decreased by $15.6 million, or 39%, of which $14.1 million resulted from a lower volume of gold production, and $1.5 million due to lower average realized gold prices.

Costs applicable to sales per gold ounce increased 65% due to lower production and higher outside service costs.

Amortization decreased to $4.8 million primarily due to lower ounces sold.

Capital expenditures increased to $11.7 million from $7.7 million due to higher infill drilling and underground development.

Six Months Ended June 30, 2023 compared to Six Months Ended June 30, 2022

Revenue increased by $21.9 million, or 89%, of which $21.4 million resulted from a higher volume of gold production, and $0.5 million due to higher average realized gold prices.

Costs applicable to sales per gold ounce decreased 47% due to higher production.

Amortization increased to $6.9 million primarily due to an increase in gold ounces sold.

Capital expenditures increased to $15.8 million from $11.7 million due to higher underground development.

Nine Months Ended September 30, 2023 compared to Nine Months Ended September 30, 2022

Gold production decreased 26% as a result of 8% lower throughput primarily due to challenges with mine sequencing and stope extraction as well as lower grades and recoveries.

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Revenue decreased by $32.3 million, or 23%, of which $36.6 million resulted from a lower volume of gold production, partially offset by an increase of $4.2 million due to higher average realized gold prices.

Costs applicable to sales per gold ounce increased 49% due to lower production.

Amortization decreased to $10.6 million primarily due to lower ounces sold and longer assumed mine life.

Costs applicable to sales per gold ounce increased 32% due to lower production partially offset by lower diesel and employee-related costs.

Amortization decreased to $17.5 million primarily due to a decrease in gold ounces sold and longer assumed mine life.

Capital expenditures increased to $38.2 million from $23.8 million due to higher infill drilling and underground development.

Three Months Ended Six Months Ended

June 30, 2023 March 31, 2023 June 30, 2023 June 30, 2022

Three Months Ended Nine Months Ended

September 30, 2023 June 30, 2023 September 30, 2023 September 30, 2022

Tons placed 1,254,267 1,041,846 3,452,907 3,530,855

7 unchanged sentences

(1) See Non-GAAP Financial Performance Measures.

Three Months Ended June 30, 2023 compared to Three Months Ended March 31, 2023

Gold production increased 66% driven by timing of recoveries.

Three Months Ended September 30, 2023 compared to Three Months Ended June 30, 2023

Gold production decreased 12% driven by timing of recoveries.

Metal sales were $47.1 million, or 24% of Coeur’s metal sales, compared to $50.8 million, or 29% of Coeur’s metal sales.

Revenue increased by $19.9 million, or 64%, of which $19.8 million was due to a higher gold production, and $0.1 million due to higher average realized gold prices.

Costs applicable to sales per gold ounce decreased 30% due to higher production and lower operating costs.

Amortization increased to $1.8 million due to higher ounces sold.

Revenue decreased by $3.7 million, or 7%, of which $4.3 million was due to a lower gold production, partially offset by an increase of $0.6 million due to higher average realized gold prices.

Costs applicable to sales per gold ounce increased 23% due to lower production and higher operating costs.

Amortization decreased to $1.6 million due to a decrease in gold ounces sold.

Capital expenditures were $0.7 million.

Six Months Ended June 30, 2023 compared to Six Months Ended June 30, 2022

Nine Months Ended September 30, 2023 compared to Nine Months Ended September 30, 2022

Gold production increased 7% driven by higher grades.

Metal sales were $128.8 million, or 23% of Coeur’s metal sales, compared to $110.9 million, or 19% of Coeur’s metal sales.

Revenue increased by $9.6 million, or 13%, of which $7.4 million

was due to a higher volume of gold production, and $2.2 million due to higher average realized gold prices.

Costs applicable to sales per gold ounce increased 2% due to higher diesel and other consumable costs primarily due to inflationary pressures.

Revenue increased by $17.9 million, or 16%, of which $12.9

million was due to a higher volume of gold production, and $5.0 million due to higher average realized gold prices.

Costs applicable to sales per gold ounce decreased 2% due to lower operating costs driven by lower diesel and other consumable costs.

Amortization decreased to $4.8 million due to longer assumed mine life.

Capital expenditures were $1.0 million.

Six Months Ended June 30, 2023

Ongoing carrying costs at Silvertip totaled $10.8 million in the first half of 2023 and $10.9 million in 2022.

Capital expenditures in the first half of 2023 totaled $0.8 million compared to $17.6 million in the prior year due to planned reduction in capital development expenditures.

Nine Months Ended September 30, 2023

Ongoing carrying costs at Silvertip totaled $13.6 million in the nine months ended September 30, 2023 and $15.5 million in 2022.

Capital expenditures in 2023 totaled $1.4 million compared to $21.4 million in the prior year due to planned reduction in capital development expenditures.

Since acquisition, exploration at Silvertip has been consistently successful, with demonstrated resource growth.

Multiple new zones have been discovered, providing a path to potentially significant resource expansion.

In addition, the full geochemical and metal zonation of the deposit will be studied including the critical minerals indium, germanium and gallium that are present in the ore body.

The Company anticipates a slower overall timeline to advance the Silvertip project, with the primary focus on growth and understanding of the overall deposit.

Multiple new zones have been discovered, resulting in significant increases in resources.

In addition, the full geochemical and metal zonation of the deposit is being studied including the critical minerals indium, germanium and gallium that are present in the ore body.

The Company anticipates a slower overall timeline to advance the Silvertip project, with the primary focus on growth and achieving a better understanding of the overall deposit.

Consistent with Silvertip’s status as a long-term exploration project, the Company reclassified its mineral reserves to measured and indicated resources as of year-end 2022.

Coeur focused on compiling, analyzing and interpreting historical data during the first half of the year to increase the understanding of the geological context and mineralization system.

Coeur focused on compiling, analyzing and interpreting historical data during the first nine months of the year to increase the understanding of the geological context and mineralization system.

Significant work on logging, data collection, analysis and interpretation is ongoing as part of this effort.

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Liquidity and Capital Resources

At June 30, 2023, the Company had $58.6 million of cash, cash equivalents and restricted cash and $280.5 million available under the RCF.

At September 30, 2023, the Company had $54.9 million of cash, cash equivalents and restricted cash and $220.4 million available under the RCF.

Future borrowing under the RCF may be subject to certain financial covenants.

Cash and cash equivalents decreased $4.6 million in the six months ended June 30, 2023, due to 14% and 1% decrease in gold and silver ounces sold, respectively, $159.6 million of capital expenditures primarily related to the Rochester expansion project and higher costs at our operations due to continued inflationary pressures, partially offset by net proceeds of $98.4 million from the sale of 32.9 million shares of its common stock in the March 2023 Equity Offering, $39.8 million received from the sale of the remaining 6.0 million shares of common stock of Victoria Gold (“Victoria Gold Common Shares”), and net proceeds of $18.2 million from the sale of 5.3 million shares of its common stock in the Private Placement Offering (excludes 3 million over-allotment shares issued subsequent to quarter end).

Additionally, the Company received net proceeds of $7.0 million from the sale of the deferred cash consideration, two royalties and contingent consideration received in connection with the sale of the La Preciosa project, $5.0 million received from the Avino note receivable, net proceeds of $1.8 million from the sale of remaining common stock of Integra Resources Corporation, and a 1% and 3% increase in average realized gold and silver prices, respectively.

At June 30, 2023, the Company had $80.0 million drawn, $29.5 million in outstanding letters of credit and $280.5 million available under the RCF.

Cash and cash equivalents decreased $8.2 million in the nine months ended September 30, 2023, due to 11% and 2% decrease in gold and silver ounces sold, respectively, $271.9 million of capital expenditures primarily related to the Rochester expansion project and higher costs at our operations due to continued inflationary pressures, partially offset by aggregate net proceeds of $147.7 million from the sale of 54.6 million shares of its common stock in the March 2023 Equity Offering and September 2023 Equity Offering, $39.8 million received from the sale of 6.0 million shares of common stock of Victoria Gold (“Victoria Gold Common Shares”), and net proceeds of $28.7 million from the sale of 8.3 million shares of its common stock in the Private Placement Offering (as defined below).

Additionally, the Company received net proceeds of $7.0 million from the sale of the La Preciosa Deferred Consideration, $5.0 million received from the Avino note receivable, net proceeds of $1.8 million from the sale of common stock of Integra Resources Corporation, and a 5% and 9% increase in average realized gold and silver prices, respectively.

At September 30, 2023, the Company had $140.0 million drawn, $29.6 million in outstanding letters of credit and $220.4 million available under the RCF.

On August 9, 2023, the Company entered into an amendment (the “August Amendment”) to the RCF.

The August Amendment, among other things, (1) modifies the financial covenants to provide greater flexibility during the final stages of the Rochester expansion under (a) the consolidated net leverage and consolidated senior secured leverage ratios at September 30, 2023 through the March 31, 2024, with the ratios returning to the previous levels at June 30, 2024 and (b) the consolidated interest coverage ratio at June 30 through September 30, 2023, with the ratio returning to the previous level at December 31, 2023, (2) allows up to $50 million, through June 30, 2024, stepping down to $40 million in September 31, 2024, $30 million in December 31, 2024 and $15 million thereafter, for integration costs or costs associated with establishing new facilities and certain costs associated with LCM adjustments at Rochester to be excluded from the calculation of Consolidated EBITDA for purposes of the RCF, (3) increases the interest rate on certain borrowings through June 30, 2024, and (4) restricts certain acquisitions through March 31, 2024.

In January 2023, the Company completed the sale of its remaining 6.0 million Victoria Gold Common Shares at a price of $6.70 per Victoria Gold Common Share, for net proceeds of $39.8 million.

At June 30, 2023, the Company held $9.2 million of equity securities.

In January 2023, the Company completed the sale of 6.0 million Victoria Gold Common Shares at a price of $6.70 per Victoria Gold Common Share, for net proceeds of $39.8 million.

At September 30, 2023, the Company held $7.2 million of equity securities.

In May 2023, the Company sold 3.7 million shares of common stock of Integra Resources Corporation (“Integra Common Shares”) at a price of $0.48 per share, for net proceeds of $1.8 million.

In March 2023, the Company completed a $100.0 million “at the market” offering of its common stock, par value $0.01 per share (the “March 2023 Equity Offering”).

The Company sold a total of 32,861,580 shares of common stock in the March 2023 Equity Offering at an average price of $3.04 per share, raising net proceeds (after sales commissions) of $98.4 million.

In June 2023, the Company sold a total of 5,276,154 shares its common stock (“Private Placement Offering”) issued as “flow-through shares” as defined in subsection 66(15) of the Income Tax Act (Canada) (the “FT Shares”), raising a net proceeds of $18.2 million, of which $5.1 million represents net proceeds received in excess of the Company’s average price (“FT Premium Liability”).

In June 2023, the Company sold a total of 5,276,154 shares of its common stock (“Private Placement Offering”) issued as “flow-through shares” as defined in subsection 66(15) of the Income Tax Act (Canada) (the “FT Shares”), raising net proceeds of $18.2 million, of which $5.1 million represents net proceeds received in excess of the Company’s average price (“FT Premium Liability”).

The proceeds of the issuance of FT Shares will be used by the Company for certain qualifying “Canadian Exploration Expenditures” (as such term is defined in the Income Tax Act (Canada)).

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The over-allotment option raised net proceeds of $10.5 million, including an additional $2.7 million of FT Premium Liability.

The Company had outstanding forward contracts on 111,498 ounces of gold and 2.5 million ounces of silver at June 30, 2023 that settle monthly through December 2023.

In September 2023, the Company completed a $50.0 million “at the market” offering of its common stock, par value $0.01 per share (the “September 2023 Equity Offering”).

The Company sold a total of 21,699,856 shares of its common stock in the September 2023 Equity Offering at an average price of $2.30 per share, raising net proceeds (after sales commissions) of $49.3 million.

The Company had outstanding forward contracts on 55,749 ounces of gold and 1.2 million ounces of silver at September 30, 2023 that settle monthly through December 2023.

The Company is targeting to hedge up to 70% of expected gold production and 50% of expected silver production for 2023 in order to protect cash flow during a period of elevated capital expenditures and may in the future layer on additional hedges as circumstances warrant.

The weighted average fixed price on the forward contracts is $1,977 per ounce of gold and $25.47 per ounce of silver.

In the second quarter of 2023, the Company exchanged $48.5 million in aggregate principal amount plus accrued interest of 2029 Senior Notes for 13.9 million shares of common stock.

In the first nine months of 2023, the Company exchanged $67.8 million in aggregate principal amount plus accrued interest of 2029 Senior Notes for 21.6 million shares of common stock.

We currently believe we have sufficient sources of funding to meet our business requirements for the next twelve months and longer-term.

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Our longer-term plans contemplate the expansion and restart of Silvertip, as well as the continued exploration to extend mine lives at all of our operating sites.

At the end of July, the project was approximately 97% complete and the Company had incurred $660 million of the total project costs.

Coeur expects to achieve mechanical completion of the crusher corridor in the third quarter, with ramp-up anticipated throughout the second half of 2023 and into early 2024.

We also have additional obligations as part of our ordinary course of business, beyond those committed for capital expenditures and other purchase obligations and commitments for purchases of goods and services.

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Cash Provided by (Used in) Operating Activities

Net cash provided by operating activities for the three months ended June 30, 2023 was $39.4 million, compared to net cash used in operating activities of $35.0 million for the three months ended March 31, 2023.

Net cash provided by operating activities for the six months ended June 30, 2023 was $4.4 million, compared to $16.2 million for the six months ended June 30, 2022.

Adjusted EBITDA for the three months ended June 30, 2023 was $22.2 million, compared to $25.1 million for the three months ended March 31, 2023.

Adjusted EBITDA for the six months ended June 30, 2023 was $47.4 million, compared to $77.3 million for the six months ended June 30, 2022.

(see “Non-GAAP Financial Performance Measures”).

Net cash used in operating activities for the three months ended September 30, 2023 was $2.4 million, compared to net cash provided by operating activities of $39.4 million for the three months ended June 30, 2023.

Net cash provided by operating activities for the nine months ended September 30, 2023 was $2.0 million, compared to net cash used in operating activities of $2.9 million for the nine months ended September 30, 2022.

Adjusted EBITDA for the three months ended September 30, 2023 was $30.6 million, compared to $22.2 million for the three months ended June 30, 2023.

Adjusted EBITDA for the nine months ended September 30, 2023 was $78.0 million, compared to $103.2 million for the nine months ended September 30, 2022 (see “Non-GAAP Financial Performance Measures”).

Net cash provided by operating activities was impacted by the following key factors for the applicable periods:

Three Months Ended Six Months Ended

In thousands June 30, 2023 March 31, 2023 June 30, 2023 June 30, 2022

Three Months Ended Nine Months Ended

In thousands September 30, 2023 June 30, 2023 September 30, 2023 September 30, 2022

Cash flow before changes in operating assets and liabilities $ 14,187 $ (6,920) $ 13,490 $ 52,224

5 unchanged sentences

Cash provided by (used in) operating activities $ (2,383) $ 39,397 $ 2,011 $ (2,900)

Net cash provided by operating activities increased $74.4 million for the three months ended June 30, 2023 compared to the three months ended March 31, 2023, primarily as a result of a 1% and 3% increase in average realized gold and silver prices, respectively, receipt of $45.0 million of metal sales prepayments in the second quarter of 2023, the timing of interest payments and lower exploration costs, partially offset by 5% and 10% decrease in gold and silver ounces sold.

Revenue for the three months ended June 30, 2023 compared to the three months ended March 31, 2023 decreased by $10.1 million, of which $12.8 million was due to the lower volume of gold and silver sales, partially offset by $2.8 million as the result of higher average realized gold and silver prices.

Net cash provided by operating activities decreased $11.8 million for the six months ended June 30, 2023 compared to the six months ended June 30, 2022, primarily due to a 14% and 1% decrease in gold and silver ounces sold, respectively, higher operating and costs, partially offset by a 4% and 1% increase in average realized gold and silver prices, respectively, receipt of $45.0 million of prepayments in the second quarter of 2023 and lower exploration costs.

Revenue for the six months ended June 30, 2023 compared to the six months ended June 30, 2022 decreased by $28.0 million, of which $41.3 million was due to a lower volume of gold and silver sales, partially offset by $13.3 million as the result of higher average realized gold and silver prices.

Cash Provided by (Used in) Investing Activities

Net cash used in investing activities in the three months ended June 30, 2023 was $75.6 million compared to $29.3 million in the three months ended March 31, 2023.

Cash used in investing activities increased primarily due to higher capital expenditures partially offset by net proceeds of $7.0 million received from the sale of the La Preciosa Deferred Consideration, and net proceeds of $1.8 million from the sale of remaining common stock of Integra Resources Corporation.

The Company incurred capital expenditures of $85.6 million in the three months ended June 30, 2023 compared with $74.0 million in the three months ended March 31, 2023 primarily related to POA 11 construction activities at Rochester and underground development at Palmarejo and Kensington in both periods.

Net cash used in investing activities in the six months ended June 30, 2023 was $105.0 million compared to $126.7 million in the six months ended June 30, 2022.

Cash used in investing activities decreased primarily due to net proceeds of $39.8 million received from the sale of its remaining Victoria Gold Common Shares, net proceeds of $7.0 million received from the sale of the La Preciosa Deferred Consideration, $5.0 million received from the collection of amounts due under the promissory note issued in connection with the sale of the La Preciosa project, and net proceeds of $1.8 million from the sale of remaining common stock of Integra Resources Corporation, partially offset by an increase in capital expenditures and the receipt of net proceeds of $15.3 million from the sale of the La Preciosa project in 2022.

The Company incurred capital expenditures of $159.6 million in the six months ended June 30, 2023 compared with $142.7 million in the six months ended June 30, 2022 primarily related to POA 11 construction activities at Rochester and underground development at Palmarejo and Kensington in both periods.

Net cash provided operating activities decreased $41.8 million for the three months ended September 30, 2023 compared to the three months ended June 30, 2023, primarily as a result of a 5% decrease in silver ounces sold, a 1% decrease in average realized gold prices, higher exploration costs of $9.5 million, lower metal sales prepayments of $15.0 million received in the third quarter of 2023, and the timing of interest payments, partially offset by a 16% increase gold ounces sold and a 4% increase in average realized silver prices.

Revenue for the three months ended September 30, 2023 compared to the three months ended June 30, 2023 increased by $17.3 million, of which $16.5 million was due to the higher volume of gold sales, and $0.9 million as the result of higher average realized silver prices.

Net cash provided by operating activities increased $4.9 million for the nine months ended September 30, 2023 compared to the nine months ended September 30, 2022, primarily due to a 5% and 9% increase in average realized gold and silver prices, respectively, the receipt of $30.0 million of prepayments in the third quarter of 2023, and the receipt of $7.8 million FT Premium Liability, partially offset by a 11% and 2% decrease in gold and silver ounces sold, respectively, higher operating and costs, and timing of VAT collections at Palmarejo.

Revenue for the nine months ended September 30, 2023 compared to the nine months ended September 30, 2022 decreased by $16.4 million, of which $49.9 million was due to a lower volume of gold and silver sales, partially offset by $33.5 million as the result of higher average realized gold and silver prices.

Cash Provided by Investing Activities

Net cash used in investing activities in the three months ended September 30, 2023 was $112.2 million compared to $75.6 million in the three months ended June 30, 2023.

Cash used in investing activities increased primarily due to higher capital expenditures and net proceeds of $7.0 million received from the sale of the La Preciosa Deferred Consideration, and net proceeds of $1.8 million from the sale of common stock of Integra Resources Corporation in the second quarter of 2023.

The Company incurred capital expenditures of $112.3 million in the three months ended September 30, 2023 compared with $85.6 million in the three months ended June 30, 2023 primarily related to POA 11 construction activities at Rochester and underground development at Palmarejo and Kensington in both periods.

Net cash used in investing activities in the nine months ended September 30, 2023 was $217.1 million compared to $182.9 million in the nine months ended September 30, 2022.

Cash used in investing activities increased due to higher capital expenditures and the receipt of net proceeds of $15.3 million from the sale of the La Preciosa project in 2022, partially offset by net proceeds of $7.0 million received from the sale of the La Preciosa Deferred Consideration, $5.0 million received from the collection of amounts due under the promissory note issued in connection with the sale of the La Preciosa project, and net proceeds of $1.8 million from the sale of common stock of Integra Resources Corporation.

The Company incurred capital expenditures of $271.9 million in the nine months ended September 30, 2023 compared with $239.3 million in the nine months ended September 30, 2022 primarily related to POA 11 construction activities at Rochester and underground development at Palmarejo and Kensington in both periods.

Cash Provided by Financing Activities

Net cash provided by financing activities in the three months ended June 30, 2023 was $25.9 million compared to $69.4 million in the three months ended March 31, 2023.

Net cash provided by financing activities in the three months ended September 30, 2023 was $111.2 million compared to $25.9 million in the three months ended June 30, 2023.

During the three months ended September 30, 2023, the Company drew $60.0 million, net, under the RCF, received net proceeds of $49.3 million from the sale of 21.7 million shares of its common stock in the September 2023 Equity Offering, and received net proceeds of $7.8 million from the sale of 3.0 million shares of its common stock issued as the FT Shares.

During the three months ended June 30, 2023, the Company drew $20.0 million, net, under the RCF, and received net proceeds of $13.1 million from the sale of 5.3 million shares of its common stock issued as the FT Shares.

During the three months ended March 31, 2023, the Company repaid $20.0 million, net, under the RCF and received net proceeds of $98.4 million from the sale of 32.9 million shares of its common stock in the March 2023 Equity Offering.

Net cash provided by financing activities in the six months ended June 30, 2023 was $95.3 million compared to $127.5 million in the six months ended June 30, 2022.

During the six months ended June 30, 2023, the Company received net proceeds of $98.4 million from the sale of 32.9 million shares of its common stock in the March 2023 Equity Offering, and received net proceeds of $13.1 million from the sale of 5.3 million shares of its common stock issued as the FT Shares.

During the six

months ended June 30, 2022, the Company drew $50.0 million, net, under the RCF, and the Company received net proceeds of $98.3 million from the sale of 22.1 million shares of its common stock in the March 2022 Equity Offering.

Net cash provided by financing activities in the nine months ended September 30, 2023 was $206.5 million compared to $204.3 million in the nine months ended September 30, 2022.

During the nine months ended September 30, 2023, the Company drew $60.0 million, net, under the RCF, received aggregate net proceeds of $147.7 million from the sale of 54.6 million shares of its common stock in the March 2023 Equity Offering and September 2023 Equity Offering, and received net proceeds of $20.9 million from the sale of 8.3 million shares of its common stock in the Private Placement Offering.

During the nine months ended September 30, 2022, the Company drew $135.0 million, net, from the RCF, and received net proceeds of $98.3 million from the sale of 22.1 million shares of its common stock in the March 2022 Equity Offering.

Critical Accounting Policies and Accounting Developments

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Adjusted net income (loss) is reconciled to Net income (loss) in the following table:

Three Months Ended Six Months Ended

In thousands except per share amounts June 30, 2023 March 31, 2023 June 30, 2023 June 30, 2022

Three Months Ended Nine Months Ended

In thousands except per share amounts September 30, 2023 June 30, 2023 September 30, 2023 September 30, 2022

Net income (loss) $ (21,109) $ (32,412) $ (78,107) $ (127,196)

11 unchanged sentences

Adjusted net income (loss) per share, Diluted $ (0.05) $ (0.06) $ (0.22) $ (0.26)

(1) For the three months ended September 30, 2023, tax effect of adjustments of $0.2 million (-8%) is primarily related to fair value adjustments on the Company’s equity investments, and LCM adjustment recorded at Rochester.

For the three months ended June 30, 2023, tax effect of adjustments of $1.1 million (-9%) is primarily related to fair value adjustments on the Company’s equity investments, loss on the sale of the La Preciosa Deferred Consideration and LCM adjustment recorded at Rochester.

For the three months ended March 31, 2023, tax effect of adjustments of $37 (0.3%) is primarily related to the fair value adjustments on the Company’s equity investments and LCM adjustment recorded at Rochester.

For the six months ended June 30, 2023, tax effect of adjustments of $1.2 million (-41%) is primarily related to the fair value adjustments on the Company’s equity investments, loss on the sale of the La Preciosa Deferred Consideration and LCM adjustment recorded at Rochester.

For the six months ended June 30, 2022, tax effect of adjustments of $9.5 million (-19%) is primarily related to the de-recognition of deferred tax liabilities related to the sale of La Preciosa and the fair value adjustments on the Company’s equity investments.

For the nine months ended September 30, 2023, tax effect of adjustments of $1.4 million (-25%) is primarily related to the fair value adjustments on the Company’s equity investments, loss on the sale of the La Preciosa Deferred Consideration and LCM adjustment recorded at Rochester.

For the nine months ended September 30, 2022, tax effect of adjustments of $9.7 million (-15%) is primarily related to the to the fair value adjustments on the Company’s equity investments and the derecognition of deferred tax liabilities related to the sale of La Preciosa.

EBITDA and Adjusted EBITDA

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Adjusted EBITDA is reconciled to Net income (loss) in the following table:

Three Months Ended Six Months Ended

In thousands except per share amounts June 30, 2023 March 31, 2023 June 30, 2023 June 30, 2022

Three Months Ended Nine Months Ended

In thousands except per share amounts September 30, 2023 June 30, 2023 September 30, 2023 September 30, 2022

Net income (loss) $ (21,109) $ (32,412) $ (78,107) $ (127,196)

19 unchanged sentences

The following table sets forth a reconciliation of Free Cash Flow, a non-GAAP financial measure, to Cash Provided By (used in) Operating Activities , which the Company believes to be the GAAP financial measure most directly comparable to Free Cash Flow.

Three Months Ended Six Months Ended

(Dollars in thousands) June 30, 2023 March 31, 2023 June 30, 2023 June 30, 2022

Three Months Ended Nine Months Ended

(Dollars in thousands) September 30, 2023 June 30, 2023 September 30, 2023 September 30, 2022

Cash flow from operations $ (2,383) $ 39,397 $ 2,011 $ (2,900)

7 unchanged sentences

The following table sets forth a reconciliation of Operating Cash Flow Before Changes in Working Capital, a non-GAAP financial measure, to Cash Provided By (used in) Operating Activities , which the Company believes to be the GAAP financial measure most directly comparable to Operating Cash Flow Before Changes in Working Capital.

Three Months Ended Six Months Ended

(Dollars in thousands) June 30, 2023 March 31, 2023 June 30, 2023 June 30, 2022

Three Months Ended Nine Months Ended

(Dollars in thousands) September 30, 2023 June 30, 2023 September 30, 2023 September 30, 2022

Cash provided by (used in) operating activities $ (2,383) $ 39,397 $ 2,011 $ (2,900)

11 unchanged sentences

Other companies may calculate CAS differently as a result of reflecting the benefit from selling non-silver metals as a by-product credit, converting to silver equivalent ounces, and differences in underlying accounting principles and accounting frameworks such as in International Financial Reporting Standards.

Three Months Ended June 30, 2023

Three Months Ended September 30, 2023

In thousands (except metal sales, per ounce or per pound amounts) Palmarejo Rochester Kensington Wharf Silvertip Total

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Silver ($/oz) $ 15.67 $ 31.74 $ —

Three Months Ended March 31, 2023

In thousands (except metal sales, per ounce and per pound amounts) Palmarejo Rochester Kensington Wharf Silvertip Total

Three Months Ended June 30, 2023

In thousands (except metal sales, per ounce or per pound amounts) Palmarejo Rochester Kensington Wharf Silvertip Total

Costs applicable to sales, including amortization (U.S.

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Silver ($/oz) $ 15.22 $ 21.39 $ —

Six Months Ended June 30, 2023

Nine Months Ended September 30, 2023

In thousands (except metal sales, per ounce and per pound amounts) Palmarejo Rochester Kensington Wharf Silvertip Total

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Silver ($/oz) $ 15.01 $ 27.38 $ —

Six Months Ended June 30, 2022

Nine Months Ended September 30, 2022

In thousands (except metal sales, per ounce and per pound amounts) Palmarejo Rochester Kensington Wharf Silvertip Total

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Silver ounces 5,205,011 2,054,176 — 29,897 — 7,289,084

Zinc pounds — —

Lead pounds — —

Costs applicable to sales

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Silver ($/oz) $ 12.76 $ 30.04 $ —

Zinc ($/lb) $ —

Lead ($/lb) $ —

Reconciliation of Costs Applicable to Sales for Updated 2023 Guidance

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Actual results could differ materially from those projected in the forward-looking statements.

The factors that could cause actual results to differ materially from those projected in the forward-looking statements include (i) the risk factors set forth in Part II, Item 1A of this Report and in the Q1 2023 10-Q and in “Risk Factors” section of the 2022 10-K, and the risks set forth in this MD&A and Item 3 of this Report, (ii) the risks and hazards inherent in the mining business (including risks inherent in developing large-scale mining projects, environmental hazards, industrial accidents, weather or geologically related conditions), (iii) changes in the market prices of gold and silver and a sustained lower price or higher treatment and refining charge environment, (iv) the uncertainties inherent in the Company’s production, exploratory and developmental activities, including risks relating to permitting and regulatory delays (including the impact of government shutdowns), mining law changes, ground conditions and grade and recovery variability, (v) any future labor disputes or work stoppages (involving the Company and its subsidiaries or third parties), (vi) the uncertainties inherent in the estimation of mineral reserves and resources, (vii) changes that could result from the Company’s future acquisition of new mining properties or businesses, (viii) the loss of access to any third-party smelter or refiner to whom the Company markets its production, (ix) the potential effects of the COVID-19 pandemic, including impacts to workforce, equipment and materials availability, inflationary pressures, continued access to financing sources, government orders that may require temporary suspension of operations at one or more of our sites and effects on our suppliers or the refiners and smelters to whom the Company markets its production, (x) the effects of environmental and other governmental regulations, (xi) the risks inherent in the ownership or operation of or investment in mining properties or businesses in foreign countries, and (xii) the Company’s ability to raise additional financing necessary to conduct its business, make payments or refinance its debt.

The factors that could cause actual results to differ materially from those projected in the forward-looking statements include (i) the risk factors set forth in Part II, Item 1A of this Report and in the Q1 2023 10-Q, the Q2 2023 10-Q and in “Risk Factors” section of the 2022 10-K, and the risks set forth in this MD&A and Item 3 of this Report, (ii) the risks and hazards inherent in the mining business (including risks inherent in developing large-scale mining projects, environmental hazards, industrial accidents, weather or geologically related conditions), (iii) changes in the market prices of gold and silver and a sustained lower price or higher treatment and refining charge environment, (iv) the uncertainties inherent in the Company’s production, exploratory and developmental activities, including risks relating to permitting and regulatory delays (including the impact of government shutdowns), mining law changes, ground conditions and grade and recovery variability, (v) any future labor disputes or work stoppages (involving the Company and its subsidiaries or third parties), (vi) the uncertainties inherent in the estimation of mineral reserves and resources, (vii) changes that could result from the Company’s future acquisition of new mining properties or businesses, (viii) the loss of access to any third-party smelter or refiner to whom the Company markets its production, (ix) the potential effects of the COVID-19 pandemic, equipment and materials availability, and inflationary pressures, (x) the effects of environmental and other governmental regulations, (xi) the risks inherent in the ownership or operation of or investment in mining properties or businesses in foreign countries, (xii) breaches or lapses in the security of technology systems on which the Company relies, which could compromise the data stored within them, as well as failure to comply with ever-evolving global privacy and security regulatory obligations, and (xiii) the Company’s ability to raise additional financing necessary to conduct its business, make payments or refinance its debt.

Readers are cautioned not to put undue reliance on forward-looking statements.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis